M. Target Group. Your Business & Tax Consultants on Cyprus

3016 Limassol, Cyprus

41, Misiaouli & Kavazoglou Street, 2nd Floor, Office 201

+357 25 87 14 14

Fax: +357 25 10 61 55

+357 96 63 66 26

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Amendments to Cyprus ‘IP Box’ Regime

Amendments to Cyprus ‘IP Box’ Regime

M. Target Group hereby informs of the recent amendments to the Cyprus Intellectual Property (IP) Box Regime aimed to provide an increased flexibility to taxpayers.

As from 1 January 2020, the following new provisions are put into effect:

Preparation of balancing statement in case of disposal of the IPs
The obligation to prepare a balancing statement on the disposal of an intangible asset is abolished. As such, no balancing addition or balancing deduction would be included in the taxpayer’s taxable income in the year of disposal.

Capital Allowances
The taxpayer has the option not to claim capital allowances in a given year. Moreover, capital allowances that have not been claimed in a year are claimed over the remaining useful life of the asset. Consequently, the tax written down value of the IP at the beginning of each year will be recalculated over the remaining useful life of the IP.

As always, M. Target Group specialists remain at your disposal should you require any further information, clarification or professional assistance on any tax matter.

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